TIP IVAs Virtuous circle

“We are all in it together” – TIP Explained

People with debt problems, their advisors, the companies they owe money to – and the professionals that arrange and manage IVAs – We all need to be in it together!

We believe IVAs are right for many more people than get them. In recent years many debt advisors, creditors and insolvency practitioners have told us that too.

An Individual Voluntary Arrangement is a great debt solution for those that need it

But, IVAs have failed all stakeholders in the process. If only, many of you said, we could have IVAs that were advised not sold, arranged by people who put professionalism first, managed transparently and at a cost that was fair to all and which helped people become more financially confident and competent.

Working through TIP, debt advisors get full transparency on costs and outcomes and our panel of insolvency practitioners strive openly to improve what they do – not just to meet regulator’s standards but to put the client first and achieve better outcomes. So, why would debt advice organisations recommend IVA clients to anyone who works in any other way? Especially as TIP IVAs ould provide a source of funding for free debt advice that is absolutely independent of any IVA provider.

In it to win it

We listened – that’s TIP in a nutshell. But, we can’t make things better for people in IVAs unless free-sector debt advisors recommend TIP IVAs to clients who really need them. And, we won’t succeed unless insolvency practitioners sign up to stick to our standards and provide the transparency debt advisors and creditors need.

Debt advisors who want to know more about TIP should sign up here. Insolvency practitioners that want to join TIP’s assessment waiting list should leave their details here.

How Tip works to improve IVAs

AS our explainer video says:

Each Stakeholder should give a little, to make a world of difference.

“Ken is struggling with his debts. He is worried he’ll lose his home. He can’t see a way forward, and it’s affecting his mental health.

This is Anna, she is a free debt advisor. She wants to help Ken. She has decided the best way for Ken to deal with his debt issues is an IVA. Anna wants to ensure Ken uses an IVA provider with a high success rate and a culture of support for Ken.

This is David, a loan provider. He is one of Ken’s creditors. He understands Ken can only pay what he can afford, but he wants to ensure the firm managing his IVA operate fair and transparent fees and can help Ken become more financially confident in the future.

We need you, whether Creditor, Debt Advisor or Insolvency Practitioner.

Join us in creating sustainable change.

Enter Frank he is an insolvency practitioner on TIP panel. Frank believes a good advice journey is key to a successful IVA. Frank is proud of his high IVA success rate, good client engagement and Low fees. As a TIP Insolvency practitioner, Frank allows Ken, Anna and David to see how well his IVA firm is performing.”

TIP’s virtuous circle
  1. The consumer needs free, independent debt advice.
  2. The debt advisor provides advice, and recommends a TIP IVA, Locating a TIP IP via the TIP Portal.
  3. Creditors agree the client’s IVA. TIP panel IPs are subject to continuous due diligence to ensure they perform at the very highest level
  4. TIP collect a fee from the IP for the advice work done by the advisor and TIP compliance services.
  5. TIP gives 40% of our gross revenue (more than half our profit) to the TIP Charitable Trust.
  6. The Trust provides funding to debt advice agencies across the UK to support the provision of free debt advice.

The Insolvency Panel charitable Trust completes our virtuous circle.

TIP makes this happen and helps everyone improve outcomes in IVAs.

 

Read our Blogs
graph of early IVA terminations showing lower rate for TIP panel members
Consumers

IVA failure rates for arrangements set up and run by TIP IPs are far lower than

TIP IVAs Virtuous circle
Debt Advisors

People with debt problems, their advisors, the companies they owe money to – and the professionals

Andrew Smith TIP IVA
Creditors

Andrew Smith, on why he’s chosen to become a director of The Insolvency Panel Ltd